Auto Insurance Information Mr. Blais Law and You

What is Auto Insurance? This is insurance that protects you from any financial loss caused by an automobile accident. You are required to pay monthly premiums to your insurance company in order to cover the cost of your insurance policy.

The Parts of Auto Insurance Bodily Injury Liability: – This covers any injuries that you (the policyholder) cause to someone else in an accident. [Also covers you if you are sued] Medical Payments (Personal Injury Protection): – Covers the treatment of injuries to the driver and passengers of the policyholder car. Property Damage Liability: – Covers any damage that you or any authorized driver does to someone else’s property.

The Parts of Auto Insurance Collision: – Covers and pays for any damage done to your car in an automobile accident. (Can also cover major pothole damage.) Comprehensive: – This covers you for any losses due to theft, fire, hail, missiles, explosions, or simply anything outside of a collision Uninsured and Underinsured Motorist Coverage: – This covers you if you get in an accident with someone who is uninsured or underinsured.

Factors which determine the price of your Auto Insurance Your driving record Miles you drive each year Where you live Age Car your drive Amount of coverage you get The average American pays between $795 and $850 a year.

Levels of Auto Insurance Coverage Bodily Injury Liability and Uninsured Liability: – 100,000 per accident/50,000 per person – 300,000 per accident/100,000 per person – 500,000 per accident/250,000 per person Property Damage Liability: – 25,000 up to 500,000 per accident Medical Payments (PIP): – 2,000 up to 5,000 per person Collision and Comprehensive: – Both based on the value of your car(s)

How to save money Shop around (prices vary significantly) Check insurance costs BEFORE you buy the car Higher deductibles Get lower coverage on older cars Get homeowners and auto insurance from the same company Get low mileage and safe driver discounts Maintain good credit Credit companies use your credit score to determine your insurance score for studies show that people who are good at managing their finances have fewer insurance claims

Discounts you can get Multiple vehicle discount Drivers Ed discount Good student discount Good driver discount Low mileage discount Anti-theft devices on your car Safety devices on your car Auto/home package

Required Coverage Under Maine State Law Bodily Injury Liability: – $100,000 per accident/$50,000 per person Property Damage Liability: – $25,000 minimum Uninsured Motorist Liability: – $100,000 per accident/$50,000 per person Medical Payments: – $2,000 minimum